NECESSITY,
FUNCTION, AND CONFORMITY: KRS 156.031 requires that administrative regulations
relating to statutes amended by the 1990 Kentucky Education Reform Act be
reviewed, amended if necessary and resubmitted to the Legislative Research
Commission prior to December 30, 1990; and KRS 160.550 requires that no local
school district may have a deficit budget situation except for a purpose for
which bonds have been voted or upon a declaration of emergency by the State
Board for Elementary and Secondary Education. This administrative regulation is
necessary to provide a safeguard against deficit spending by local boards of
education and to establish the process for declaration of an appropriate
emergency.

Section 1. The
chief state school officer shall determine on the basis of evidence submitted
in an application provided by the Division of School District Finance to exceed
the current budget of a local board of education whether or not an emergency
exists within the meaning of KRS 160.550. The chief state school officer shall
examine carefully all facts pertaining to the claimed emergency and take such
action as he deems appropriate, including the authority to declare an emergency
in those cases where the health and safety of the pupils of the school district
are placed in jeopardy or the school program disrupted.

Section 2. Any
application to exceed the current budget filed under this administrative
regulation, as well as any emergency declared by the chief state school
officer, shall be submitted to the State Board for Elementary and Secondary
Education for a final decision. (SBE 21.050; 1 Ky.R. 69; Am. 695; eff. 3-12-75;
5 Ky.R. 1082; eff. 8-1-79; 17 Ky.R. 1548; eff. 12-9-90.)